RMD Paybacks

Forum|Forum|5 years ago
January 21, 2021
1 reply
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I did a RMD payback in 2020. My IRA/RMD manager sent me a 1099 R with the payback still in the Gross Distribution. I have Turbotax Deluxe. How does Turbotax handle the payback of RMDs? I still have a Qualified Charitable Distribution (QCD) from the account and did not repay it.

dmertz

Level 15

Because RMDs were waived for 2020, the distribution was not an RMD even if that was the original intent of the distribution. After entering the Form 1099-R exactly as received, you must indicate that none of the distribution was RMD, then indicate that you moved the money to another retirement account (or returned it to the same account), that you rolled over some or all the distribution, then enter the amount that you rolled over.

Regarding the QCD, 2020 TurboTax presently (version R14) has a bug the prevents it from asking the necessary QCD question for those with a birthdate between July 1, 1949 and June 30, 1950. As a workaround for this, with the CD/download version you can provide the QCD-amount information on the 1099-R in forms mode or in any version of TurboTax you can temporarily change your birthdate in TurboTax to something before July 1, 1949, edit the 1099-R form in TurboTax and answer the question asking how much was transferred to charity, then change your birthdate in TurboTax back to your actual birthdate.

GAAZ

Level 2

Thanks for this answer. Even if you return only part of what would have been your RMD to the IRA, you must check the box indicating that none of this distribution was an RMD. This answer seems to be contrary to the instructions on that entry screen which indicates that if it were an RMD to check the box that some or all of the distribution was an RMD.